Shaping Your Financial Future

3 Guidelines For Choosing A Credit Repair Company

9 September 2021 by Angie Wells

If you have poor credit, you may struggle to purchase a home, finance a vehicle, or secure favorable interest rates on future debt. Working with a credit repair company can help improve your credit so that you're more likely to be approved for a loan with favorable terms.

However, all credit repair companies aren't created equally. Follow these guidelines to locate a legitimate credit repair company that's right for your needs. 

1. Avoid Companies Making Impossible Claims

Some companies may advertise that they guarantee your credit will improve. Others might boast that they can remove derogatory information or create an entirely new credit identity for you. Avoid any company making a claim that seems too good to be true or that wants you to lie about your finances. 

Companies that make extraordinary promises are often unable to fulfill these claims. They're simply seeking to acquire as many customers as possible who are willing to make upfront payments to improve their credit. While it's illegal for credit repair companies to require payment before they perform any services, a business running a scam is likely to ignore this rule. 

Instead, look for a company with reasonable claims that doesn't charge you until they've satisfied these claims. Credit repair companies will improve your credit by completing tasks like scanning your credit for inaccurate or old information and disputing these inaccuracies. They may also provide written requests that require debt collection companies to prove a debt legally belongs to you. 

2. Read Reviews From Other Customers

Search social media sites and business review websites to determine if the business has a good reputation. While most companies will have a few negative reviews, a solid company will generally have favorable reviews. A reputable company also acknowledges negative reviews and seeks to remedy the situation. 

3. Decide if You Want a Company That Makes Recommendations To Improve Your Credit

Some credit repair companies will review your overall situation and provide recommendations that will improve your credit. For example, assume that your credit history only consists of credit cards. The company may recommend that you take out a loan so that there's a better mix of credit products on your report. Or they may advise you to request increases on your credit card limits so that you have lower overall debt utilization.

You may want to explore any available options to improve your credit, or you might prefer to avoid taking on additional debt. Whichever alternative you're comfortable with, confirm that a potential credit repair company will follow your wishes. 

For more information, contact a credit repair company like The Credit Repair.

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